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choli [55]
3 years ago
14

On January 1, 2018, Bonita Corporation issued $5900000, 10-year, 9% bonds at 101. Interest is payable annually on January 1. The

journal entry to record this transaction on January 1, 2018 is
Business
1 answer:
GREYUIT [131]3 years ago
3 0

Answer and Explanation:

The journal entry to record the issuance of the bond is shown below

On Jan 1, 2018

Cash (5,900,000 × 101%) $5,959,000

      Bonds Payable $5,900,000

      Premium on Bonds Payable $59,000

(Being the issuance of the bond is recorded)

Here the cash is debited as it increased the assets and credited the bond payable & premium on bond payable as it also increased the liabilities

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Which of the following items are normally classified as current liabilities for a company that has a one-year operating cycle? (
sukhopar [10]

Answer:

The correct answer are D, E and F

Explanation:

Current liabilities are the short-term obligations of the company or the business which are due within the period of one year or within a operating cycle. An operating cycle states the cash conversion cycle, which is the time taken by the company to purchase the inventory and then convert the inventory into cash through sales.

The items which can be classified as Current Liabilities are portion of the long term note which is due in 1 month, wages payable due in 7 days and  portion of the long term note which is due in 10 months.

7 0
3 years ago
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Answer:

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6 0
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Answer:

PV Index = 1.158

Explanation:

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Hope that helps.

8 0
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